Investigating the intersection of politics, lobbying and public policy at RepublicReport.org.
This post was originally published at RepublicReport.org.
Among visitors to Freedom Fest, a libertarian convention in Las Vegas, you might miss the aging Don Blankenship amid other middle-aged attendees and a swarm of college students in three-piece suits. Blankenship, wearing a bowling shirt and tan slacks, moves from panel to panel carrying a tote bag filled with free schwag—of which there was a lot to choose from, including this “water bottle” from the Charles Koch Institute—like anyone else. The former CEO of Massey Energy became the most feared man in West Virginia for his ruthless control over his mines and for busting unions throughout Appalachia. Now, he might be the most hated, after a 2010 blast at his company’s Upper Big Branch mine killed twenty-nine workers in one of the worst mining disasters in American history.
Blankenship, who retired from Massey after the tragedy at UBB, is now a political activist, and he’s in Nevada for several reasons. For one thing, he was there to attend the Heartland Institute’s conference on global warming denial, which preceded Freedom Fest. And in any case, he now resides in Sin City for tax purposes.
It’s the first time Blankenship has attended either event, he tells me, but he’s eager to gather intellectual fodder for a movie he’s creating on the US economy. “I’m basically looking for information and fresh ideas,” Blankenship says. “We’re in a reg-cecession,” he explains, which is a term he created for “a recession caused by excessive regulation, including many based on global warming.”
At the height of his power, shortly before the blast, Blankenship was already a powerful political player and served on the board of the US Chamber of Commerce, arguably the most influential business lobbying group in the world. After the mine tragedy, the Chamber and other coal-connected political groups successfully defeated congressional efforts to update the laws governing mine safety. Republic Report obtained a financial disclosure form that shows that under Blankenship his coal company donated $100,000 to the Competitive Enterprise Institute, a libertarian think tank that penned an op-ed after the mine collapse to warn against letting the tragedy be used by “anti-mining activists” for new regulations.
“Most people excuse their lack of involvement in politics as politics being dirty and politics causing problems,” says Blankenship, “but the only way to have good government is to have better candidates and elect better people and it’s why we have $17 trillion in debt and an economy that’s declining.”
Blankenship concedes that he is not as active in the political realm as he used to be, though he still gives an occasional phone call to his former colleagues. “I’ve spoken to the US Chamber and I’ve spoken to the coal associations. You can not just immediately have your hand out to compromise, you’ve got to have belief and you have to stand up for what’s right, not what’s politically correct.”
After listening to Blankenship’s short diatribe against the Sierra Club and Greenpeace, I asked Blankenship what should be done about these environmental groups. “You’ve got to fight them at every step,” he replies. “The environmental movement isn’t a great cause, it’s a great business.”
To Blankenship, the EPA’s coal power plant regulations and the mine safety crowd all represent the same ideology. “The actual UBB explosion was partially the result of the war on coal,” he says.
A minute later, after mentioning that he is going to be late to meet his date for lunch, he makes the connection even more explicit. “UBB is just another example of how willing the far left is to outright lie and of course when I was CEO of Massey I was coached to say ‘untruthful,’ but really it’s a lie. The reason you know they will lie about the science of global warming is because they lied about the very science of UBB. Their willingness to lie about that solidifies in my mind their willingness to lie about the science of global warming.”
Over the last year, Blankenship has tried to clear his name over the UBB mine disaster. He created a short video and has told almost any reporter willing to listen that the disaster was a freak accident relating to the buildup of natural gas. Reports from workers and subsequent investigations have made clear that Massey Energy’s mines had skirted safety rules and were infamous for allowing a dangerous build-up of methane and other flammable gas. A study from the Investigative Reporting Workshop at American University showed that Massey’s corner-cutting had led to the worst safety record of any coal mining company for ten years prior to the disaster.
Blankenship continues to expound on his worldview. “Here’s where I get into answers that are very unpopular.” A wry grin creeps Blankenship’s otherwise expressionless face. “You’re basically seeing, well, I don’t want to use the word, but the way I describe fascism is the control of people’s lives by the combined efforts of big business and big government.” He rattles off several examples: GE’s getting sweetheart deals from the Obama administration, the bank bailouts, Warren Buffet. Publicly traded companies are increasingly making their money overseas, so they don’t have to comply with domestic regulations, Blankenship says. That’s why they support the Obama administration.
Before he has to go, he reminds me that his movie on regulation will come out on Labor Day. Its argument, he claims will even sell with union workers, who have been duped by their bosses into supporting anti-mining politicians like Obama and Joe Biden.
Who would better lead our country?
“I love Ted Cruz’s courage with the Obamacare filibuster,” he says. “I don’t like Rand Paul as much as father Ron Paul. Like what Rubio’s been saying. Ben Carson.” If he had his druthers, who would he pick for the White House? “I’d reincarnate Ronald Reagan.”
With that, he smiled for the second time in the conference, waddled into his seat and disappeared into a crowd of other libertarian activists.
Read Next: Paul Ryan’s big and bad ideas for America’s working poor
This post was originally published at RepublicReport.org.
Last Friday, just before the Federal Communication Commission closed its comment period for its upcoming rule on “network neutrality,” a massive coalition of Asian, Latino and black civil rights groups filed letters arguing that regulators should lay off of Internet Service Providers regarding Title II reclassification and accept FCC Chairman Tom Wheeler’s original plan. In other words, something close to half of the entire civil rights establishment just sold out the Internet.
The civil rights groups letters argue that Title II reclassification of broadband services as a public utility—the only path forward for real net neutrality after a federal court ruling in January—would somehow “harm communities of color.” The groups wrote to the FCC to tell them that “we do not believe that the door to Title II should be opened.” Simply put, these groups, many of which claim to carry the mantle of Martin Luther King Jr., are saying that Comcast and Verizon should be able to create Internet slow lanes and fast lanes, and such a change would magically improve the lives of non-white Americans.
The filings reveal a who’s who of civil rights groups willing to shill on behalf of the telecom industry. One filing lists prominent civil rights groups NAACP, the League of United Latin American Citizens, the Urban League, the National Council on Black Civil Participation and the National Action Network. The other features the Council of Korean Americans, the Japanese American Citizens League, the National Black Farmers Association, the Rainbow PUSH Coalition, OCA, Asian Pacific American Advocates, the National Puerto Rican Chamber of Commerce, the Latino Coalition and many more.
Of course, the groups listed on these filings do not speak for all communities of color on telecom policy, and there are civil rights groups out there that actually support net neutrality, including Color of Change and Asian Americans Advancing Justice. Joseph Torres with Free Press told Vice that communities of color believe a free and open Internet is essential in the digital age, especially when most non-whites do not own radio stations, broadcast outlets or other forms of mass media. “Protecting real net neutrality is critical for people of color because an open Internet gives us the opportunity to speak for ourselves without having to ask corporate gatekeepers for permission,” Torres says.
A number of K Street consultants have helped make this epic sell-out possible.
The Minority Media and Telecommunications Council (MMTC) coordinated many of the participants in the anti–net neutrality filings sent to the FCC last week. Last year, the Center for Public Integrity published an investigation of MMTC, showing that the group has raised hundreds of thousands of dollars from Verizon, Comcast, the National Cable and Telecommunications Association and other telecom sources while reliably peddling the pro-telecom industry positions. For instance, the group attacked the Obama administration’s first attempt at net neutrality, while celebrating the proposed (and eventually successful) merger between Comcast and NBC.
Martin Chavez, the former mayor of Albuquerque, now works with a group called the Hispanic Technology and Telecommunications Partnership (HTTP) to corral Latino civil rights groups into opposing net neutrality. Last month, Chavez hosted a net neutrality event on Capitol Hill to call on legislators to oppose Title II reclassification. As Time recently reported, Chavez is on the staff of one of Verizon’s lobbying firms, the Ibarra Strategy Group.
“HTTP is nothing more than an industry front-group that is at best misinformed and at worst intentionally distorting facts as it actively opposes efforts to better serve the communications needs of Latinos,” says Alex Nogales of the National Hispanic Media Coalition, which strongly supports net neutrality. His group has filed its own letter to the FCC.
Still, telecom cash has become a vital source of funding for cash-starved nonprofits. OCA, the Asian-American civil rights nonprofit formerly known as the Organization of Chinese Americans, counts Comcast as a major donor and sponsor for its events and galas. Not only did OCA go on to sign the anti–net neutrality letter last Friday, the group wrote a similar filing to the FCC in 2010, claiming absurdly that Asian-American entrepreneurs would benefit from having ISPs able to discriminate based on content. Similarly, League of United Latin American Citizens, better known simply as LULAC, has been a dependable ally of the telecom industry while partnering with Comcast for a $5 million civic engagement campaign. Here’s a picture of LULAC proudly accepting a jumbo-sized check from AT&T.
As Vice first reported, telecoms are desperate for third-party approval, and have even resorted to fabricating community support for their anti–net neutrality lobbying campaign.
Perhaps the bigger picture here is how so many of the old civil rights establishments have become comfortable with trading endorsements for cash. Verizon, Comcast, AT&T and other telecom companies have donated, either directly or through a company foundation, to nearly every group listed on the anti–net neutrality letters filed last week. We saw a similar dynamic play out with Walmart when the retailer handed out cash to civil rights groups in order to buy support for opening stores in urban areas.
Times have changed. Just as Martin Luther King Jr.’s children have embarrassingly descended into fighting bitterly over what’s left of his estate, the civil rights groups formed to advance Dr. King’s legacy seem willing to sell out their own members for a buck.
Read Next: “Why Is a Nice Network Like MSNBC Silencing Protest?”
This post was originally published at RepublicReport.org
Eric Cantor’s surprise defeat in the Republican primary, and subsequent decision to step down as majority leader, has set off a scramble within his party. The current whip, Representative Kevin McCarthy (R-CA), is widely perceived as the next majority leader, while Representative Peter Roskam (R-IL), Marlin Stutzman (R-IN) and Steve Scalise (R-LA) are rounding up votes to take McCarthy’s place as whip.
Though there are negligible policy differences between the candidates, particularly on energy issues, one candidate is particularly close to the fossil fuel lobby: Steve Scalise, the chairman of the Republican Study Committee, a caucus of likeminded conservative members, who represents an area of the Gulf Coast with a large concentration of offshore oil jobs.
A number of former Scalise staffers are now employed as lobbyists for the fossil fuel industry. Megan Bel, Scalise’s former legislative director, now works for the National Ocean Industries Association, a trade group for offshore oil drilling companies. Stephen Bell, Scalise’s longtime spokesperson, joined the National Rural Electric Cooperatives Association—a group that represents largely coal-fire power plants and has lobbied aggressively against the EPA’s new carbon rules—in April.
Scalise has cultivated political support from Koch Industries, the American Petroleum Institute, and Halliburton as part of the Republican Study Committee’s business outreach effort, according to a report in Politico. Notably, a Republican Study Committee outreach meeting with lobbyists occurred in the office of Shockey Scofield Solutions, Koch’s lobbying firm registered to defeat new carbon tax proposals.
Politico Influence also reports that Scalise counts several lobbyists among his inner circle. Jim McCrery, who held the same Louisiana district seat in Congress before retiring, is close to Scalise and now represents Koch Industries and Hess Corporation, among other clients. Rhod Shaw, another lobbyist reportedly close to Scalise, works at a firm that represents nearly a dozen fossil fuel interests, including BP, the coal-dependent utility company Duke Energy, and Murphy Oil.
Will the fossil fuel lobby leverage its considerable pull within the House GOP to ensure Scalise has enough votes to become House majority whip? The Wall Street Journal reports that McCarthy dropped previous support for wind energy tax credits as he moved to run for majority leader—a move perceived as a bid to build support among oil and coal interest groups.
Leadership elections, which are conducted by a secret ballot, are scheduled for June 19.
This post was originally published at RepublicReport.org
“All of the investment banks, up in New York and DC, they should have gone to jail.”
That isn’t a quote from an Occupy Wall Street protester or Senator Elizabeth Warren. That’s a common campaign slogan repeated by Dave Brat, the Virginia college professor who scored one of the biggest political upsets in over a century by defeating majority leader Eric Cantor in the Republican primary last night.
The national media is buzzing about Brat’s victory, but for all of the wrong reasons.
Did the Tea Party swoop in and help Brat, as many in the Democratic Party are suggesting? Actually, The Wall Street Journal reports no major Tea Party or anti-establishment GOP group spent funds to defeat Cantor. Did Cantor, the only Jewish Republican in Congress, lose because of his religion, as some have suggested? There’s no evidence so far of anti-Semitism during the campaign. Was Cantor caught flatfooted? Nope; Cantor’s campaign spent close to $1 million on the race and several outside advocacy groups, including the National Rifle Association, the National Realtors Association and the American Chemistry Council (a chemical industry lobbying association) came in and poured money into the district to defeat Brat. The New York Times claims that Brat focused his campaign primarily on immigration reform. Brat certainly made immigration a visible topic in his race, but Republic Report listened to several hours of Brat stump speeches and radio appearances, and that issue came up far than less what Brat called the main problem in government: corruption and cronyism.
Brat told Internet radio host Flint Engelman that the “number- one plank” in his campaign is “free markets.” Brat went on to explain, “Eric Cantor and the Republican leadership do not know what a free market is at all, and the clearest evidence of that is the financial crisis … When I say free markets, I mean no favoritism to K Street lobbyists.” Banks like Goldman Sachs were not fined for their role in the financial crisis—rather, they were rewarded with bailouts, Brat has said.
Brat, who has identified with maverick GOP lawmakers like Representative Justin Amash of Michigan, spent much of the campaign slamming both parties for being in the pocket of “Wall Street crooks” and DC insiders. The folks who caused the financial crisis, Brat says, “went onto Obama’s rolodex, the Republican leadership, Eric’s rolodex.”
During several campaign appearances, Brat says what upset him the most about Cantor was his role in gutting the last attempt at congressional ethics reform. “If you want to find out the smoking gun in this campaign,” Brat told Engelman, “just go Google and type the STOCK Act and CNN and Eric Cantor.” (On Twitter, Brat has praised the conservative author Peter Schweizer, whose work on congressional corruption forced lawmakers into action on the STOCK Act.)
The STOCK Act, a bill to crack down on insider trading, was significantly watered down by Cantor in early 2012. The lawmaker took out provisions that would have forced Wall Street “political intelligence” firms to register as traditional lobbyists would, and removed a section of the bill to empower prosecutors to go after public officials who illegally trade on insider knowledge. And Brat may be right to charge that Cantor’s moves on the STOCK Act were motivated by self-interest. Cantor played a leading role in blocking legislation to fix the foreclosure crisis while his wife and his stock portfolio were deeply invested in mortgage banks.
Most self-described Tea Party Republicans, including Rand Paul and Ted Cruz, have railed against Washington in a general sense without calling out the powerful—often Republican-leaning—groups that wield the most power.
“Eric is running on Chamber of Commerce and Business Roundtable principles,” Brat told a town hall audience, later clarifying that he meant the US Chamber of Commerce, the largest lobbying trade group in the country. He also called out the American Chemistry Council for funding ads in his race with Cantor, telling a radio host that his opponent had asked his “crony capitalist friends to run more ads.” Brat repeats his mantra: “I’m not against business. I’m against big business in bed with big government.”
Indeed, Cantor has been a close ally to top lobbyists and the financial industry. “Many lobbyists on K Street whose clients include major financial institutions consider Cantor a go-to member in leadership on policy debates, including overhauling the mortgage finance market, extending the government backstop for terrorism insurance, how Wall Street should be taxed and flood insurance,” noted Politico following Cantor’s loss last night. In 2011, Cantor was caught on video promising a group of commodity speculators that he would roll back regulations on their industry.
There are many lessons to be learned from the Cantor-Brat race. For one, it’s worth reflecting on the fact that not only did Cantor easily out raise and outspend Brat by over $5 million to around $200,000 in campaign funds, but burned through a significant amount on lavish travel and entertainment instead of election advocacy. Federal Election Commission records show Cantor’s PAC spent at least $168,637 on steakhouses, $116,668 on luxury hotels (including a $17,903 charge to the Beverly Hills Hotel & Bungalows) and nearly a quarter-million on airfare (with about $140,000 in chartered flights)—just in the last year and a half!
But on the policy issues and political ramifications of this race, it’s not easy to box Brat into a neat caricature of an anti-immigration zealot or Tea Party demagogue, or, in Time’s hasty reporting, a “shopworn conservative boilerplate.” If Brat ascends to Congress, which is quite likely given the Republican-leaning district that he’ll run in as the GOP nominee, he may actually continue taking on powerful elites in Washington.
Read Next: George Zornick ties Eric Cantor’s defeat to immigration reform
This post was originally published at RepublicReport.org
Note: An earlier version of this article contained factual errors that have since been corrected — see below.
Out of a crowded field of candidates hoping to replace retiring Representative Henry Waxman in Los Angeles, Democrat Matt Miller has attempted to distinguish himself by touting a variety of experiences. Miller’s campaign advertisement lists his various positions as a radio show host, education expert, former Clinton administration official, and business adviser. As he announced his candidacy, Miller took a leave from The Washington Post and NBC, where he was a columnist and contributor. What hasn’t been reported is his other breadwinning job: PR consultant.
Ethics forms filed by Miller to the House Clerk’s office, a standard procedure for any candidate for Congress, reveal that Miller received $239,099 from Burson-Marsteller, the influence and public relations firm, in 2013.
The ethics forms show a laundry list of other corporate clients, including American Express, General Electric, Linder & Associates, RLM Finsbury and Walmart. The New York Times’s Mark Leibovich, in his write-up of the race, described Miller as a former consultant to McKinsey & Company. The ethics forms show that Miller continued to receive a salary at the firm up until announcing his run: $295,927 in 2013 and 2014, and $318,721 in the previous year, 2012. Many of Miller’s clients continued to pay him up until he announced his candidacy, including RLM Finsbury, which bills itself as a public affairs firm that helps influence lawmakers and regulators. RLM Finsbury says Miller left the firm as he launched his campaign.
For an insider with deep ties to the lobbying community, it may seem surprising that the Los Angeles Times, in endorsing Miller, counted him as outside the flock of candidates who are “embedded members of the system.”
The many corporate consultancy gigs held by Miller may cast his policy and pundit positions into question. For instance, when Miller penned a column for the Post defending corporations that take full advantage of the tax code to dodge paying billions in corporate income taxes, he did not disclose at the time that he was being paid by GE, a company that has become a symbol of this problem. Miller has endorsed cutting entitlement programs such as Social Security. As PR Week reported, Miller’s Burson-Marsteller was retained by billionaire Pete Peterson’s Fix the Debt campaign to help advocate for spending cuts to reduce the national debt.
Miller, in response to a query from Republic Report, says he has “always kept my editors and producers at my various outlets informed about my business activities, and have routinely made disclosures on air or in print where a reader or audience member should know of such work to avoid any conflict.” On KCRW radio, where Miller has hosted the popular show Left, Right, and Center, Miller says he has mentioned on air that he is an adviser to GE chief executive Jeffrey Immelt. ”I advised on strategy, policy and communications, and helped lead work on two reports issued by McKinsey’s education practice on the achievement gap and on elevating the teaching profession in the US. At Burson, I advised clients on external communications and reputation matters, and helped with client development,” Miller says.
As Republic Report has reported, several lobbyists and consultants working in the world of corporate advocacy have made the jump to run for Congress this year. In Virginia, we revealed that Republican candidate Ed Gillespie has been quietly consulting for oil and gas lobbying groups, while also advising firms such as AT&T and Bank of America. In North Carolina, we disclosed the many financial industry clients of Taylor Griffin, an establishment backed candidate who failed in his primary bid against Congressman Walter Jones (R-NC).
This post has been updated to correct and clarify information about the timing of Miller’s income from certain clients, in particular to clarify that Miller stopped working for the above-cited clients by the time he launched his campaign. We regret the error. Miller also says that his payments from GE and American Express related to his work advising President Obama’s Council on Jobs and Competitiveness. The two companies, Miller says, shared expenses for his services. After publication of this article, Miller contacted Republic Report but would not reveal the identity of his Burson-Marsteller clients.
Read Next: Peter Van Buren on the success of the rich
This post was originally published at RepublicReport.org.
One of the many consulting firms retained to build support for the Keystone XL, a controversial pipeline to bring oil sands in Canada to Gulf Coast refineries, failed to disclose its activities as federal law appears to have required. Through a records request, Republic Report has found that the Alberta government hired a public relations company called Feverpress to promote the pipeline last year.
Feverpress, run by Hilary Lefebvre and David Press, was retained for $65,000. In a memo to David Manning, Alberta’s lobbyist in Washington, DC, Feverpress said they had reached out to “producers and reporters to gauge the level of interest in the Keystone issue and to introduce the premier as a spokesperson to speak on behalf of Canadian efforts to secure approval of the pipeline.” The invoice shows a payment titled “Public Relations Services Relating to Keystone Pipeline.”
The firm pledged to reach out to “bigger targets” in the media, including Charlie Rose and Piers Morgan. “We have devised a strategy to focus interest on Alberta as a contributor to the US economy and environmental sustainability, to take advantage of ongoing media interest in energy security, seasonal interest in gasoline prices, and responding to increased efforts by the environmental community to portray Keystone’s impact in a very negative way,” wrote the firm to their clients in Canada.
The final decision on the Keystone XL will be made by President Barack Obama. To influence the process, a number of interest groups that stand to gain from approval of the pipeline have conducted a multi-year promotional campaign.
Critics say approval will drastically boost carbon emissions because the pipeline will vastly accelerate high-carbon tar sands production. NASA scientist James Hansen has declared that the pipeline is a “fuse to the biggest carbon bomb on the planet.”
The Alberta government has gone to great lengths to build public support for the Keystone XL. Last year, Alberta retained consulting firms Rasky Baerlein Strategic Communications and Mehlman Vogel Castagnetti to help with Keystone XL outreach among reporters and public officials. As DeSmogBlog’s Brendan DeMelle noted, both firms are led by former staffers to political leaders central to the Keystone XL approval process, including Secretary of State John Kerry.
According to her website biography, Feverpress’ Hilary Lefebvre is a former “communications official in the Hillary Clinton for President campaign.”
But Rasky Baerlein Strategic Communications and Mehlman Vogel Castagnetti were reported last year as Alberta clients because both firms registered and disclosed their activities as required by the Foreign Agents Registration Act. Feverpress did not.
“If Feverpress was hired on behalf of the government of Alberta or any foreign political party to conduct a public relations campaign in the United States to affect public policy, Feverpress would be required to register under FARA and disclose its compensation, clients and lobbying activities,” says Craig Holman, an ethics expert with Public Citizen.
The Foreign Agents Registration Act was adopted in 1938 after reports that the Nazi government was attempting to influence American public opinion to not intervene in World War II. The law requires registration and disclosure of foreign principals attempting to influence American public policy through public relations campaigns as well as direct lobbying.
The contract with Alberta states Feverpress was brought on to devise “media strategy” regarding “the Keystone XL and oil sands development…to ensure continued and expanded market access to the US for Alberta oil sands resources.” The communications obtained by Republic Report show that Feverpress attempted to book former Alberta premiere Alison Redford on media programs including Morning Joe, Andrea Mitchell Reports, Piers Morgan Live and The Lead with Jake Tapper.
Contacted by Republic Report for comment, Kevin Armstrong, a public affairs officer with Alberta International and Intergovernmental Relations, said consultants retained by his agency register on their own under applicable laws. “We expect the companies we contract with to abide by the law,” said Armstrong.
Feverpress could not provide a comment when reached by Republic Report.
A copy of the Feverpress contract and invoice with Alberta can be found here.
Earlier this year, Republic Report revealed that other interest groups have been working behind the scenes to promote the pipeline. In February, we reported on a group of oil refinery companies that have spent millions of dollars to finance pro-pipeline grassroots organizations and campaign ads. We also reported that a prominent economic analysis firm that had produced a report downplaying environmental concerns regarding the Keystone XL had been quietly retained by Alberta for a lucrative consulting contract.
Read Next: Rand Paul defends voting rights.
This post was originally published at RepublicReport.org
Congressman Walter Jones, a Republican who represents a wide swath of eastern North Carolina, might not strike you as a populist. But as a lawmaker, the veteran politician with a slow Southern drawl has become a gadfly in his own party for thumbing his nose at powerful political interests. He is the only GOP co-sponsor of the DISCLOSE Act, a measure to reveal the donors of dark-money campaign advertisements. He is among the loudest critics of the war in Iraq and Afghanistan, telling an audience one that “Lyndon Johnson’s probably rotting in hell right now because of the Vietnam War, and he probably needs to move over for Dick Cheney.” And Speaker John Boehner removed Jones from the House Financial Services Committee, which oversees Wall Street. His sin? Bucking leadership and supporting many bills to further regulate the financial sector, along with serving as the last remaining House Republican to have voted for the Dodd-Frank reform package.
The Republican establishment has attempted to remove Jones from office by dispatching a number of primary challengers over the years. For this cycle, a former Bush administration aide named Taylor Griffin is the party favorite to finally wipe out Jones.
Several outlets, such as Bloomberg News, have reported that Griffin’s candidacy is being heavily promoted by the financial industry. JPMorgan Chase, Bank of America, Wells Fargo and other banks helped fuel the $114,000 fundraising haul Griffin reported in his first campaign disclosure report. Earlier this week, a Super PAC financed in part by hedge fund titan Paul Singer went on air with a negative ad against Jones.
What hasn’t been reported, however, is that Griffin himself is a longtime political consultant for the biggest predators on Wall Street.
Republic Report has obtained a disclosure report that shows that Griffin’s client list reads like a who’s who of financial interests that have preyed upon North Carolina families for short term gain.
Griffin, whose career includes a stint on the the Bush election campaign team and Treasury Department, is a co-founder of Hamilton Place Strategies, a “policy and public affairs” firm that boasts of its team of former government officials. Like many companies that work to influence policy within the Beltway on behalf of corporate interests, Hamilton Place Strategies does not register under the Lobbying Disclosure Act, though it advertises its ability to shape the regulatory environment. The company, which specializes in public relations, is located a stone’s throw from K Street and the White House in a corridor of Washington favored by many influence peddlers.
Griffin touts himself as a conservative small businessman. His campaign website “About” section makes only a passing reference to his prior position with Hamilton Place Strategies, noting obliquely that he founded a “leading public policy consulting firm, quickly growing it to a business that included over 20 employees on its payroll.” Before launching his campaign in October, Griffin sold his share of the firm and moved to New Bern, a city within North Carolina’s third congressional district.
Griffin’s client list has never before been reported. But a mandatory candidate filing, disclosed by the House Clerk last week, opens a window into his business operation.
Griffin worked for Lender Processing Services Inc. (LPS), the infamous company that forged foreclosure documents on behalf of the big banks. In a practice that became known as “robo-signing,” LPS created more than “1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States.” Citigroup, Bank of America, Wells Fargo, JPMorgan Chase and Ally Financial allegedly used robo-signing to engage in unlawful foreclosures. The robo-signing tactics were reportedly used extensively in North Carolina.
Though Griffin revealed his LPS work on his disclosure form, he also refused to list other clients, noting that “certain confidential clients are not reported due to terms of agreement into at the time services were retained.” But public statements from his company, including from Tony Fratto, another co-founder of Hamilton Place Strategies, shows the firm has been working for Magnetar Capital, a hedge fund famous for helping helping inflate the housing bubble that led to the 2008 financial crisis.
In a Pulitzer Prize–winning article for ProPublica, reporter Jesse Eisinger revealed that Magnetar helped create “arcane mortgage-based instruments, pushed for risky things to go inside them and then bet against the investments,” a scheme that earned them hundreds of millions of dollars. Now, according to reports, Magnetar is back in the housing business, taking advantage of low prices to buy up homes and rent them out.
As part of their strategy to dupe investors, Magnetar allegedly enlisted the rating agency Standard & Poor’s to provide a high-level A-grade listing for Magnetar’s synthetic financial products. Though it’s not clear what he did for the firm, Griffin lists McGraw Hill Financial, the parent company of Standard & Poor’s, as one of his clients (the firm has been accused of engaging in other fraudulent rating schemes that led to the financial collapse).
Another Griffin client, according to his ethics form, is an interest group that is actively lobbying to hike property insurance rates on North Carolina families, including those in the Outer Bankers region Griffin hopes to represent.
Griffin works for the Property Casualty Insurers Association of America, a trade association for property insurers. This year, the PCIAA promoted a state property insurance hike as high as 35 percent on homeowners in North Carolina beach communities. In Washington, the PCIAA’s team of ten registered lobbyists worked to oppose the Homeowner Flood Insurance Affordability Act, recently passed legislation designed to “freeze premium increases on most homes governed by flood-insurance rate maps.”
As The Charlotte Observer reported, without this legislation, some coastal families faced flood insurance rate hikes from $850 a year now to as high as $21,000.
Griffin’s campaign did not respond to Republic Report’s request for comment about his personal finances. The forms, however, have other revelations.
Griffin has told reporters that he sold his shares in Hamilton Place Strategies, suggesting that he is no longer affiliated with the firm or in public policy consulting. However, the disclosure reports show that he has continued to earn a living from Hamilton Place Strategies—at least in excess of $5,000—and this year earned income (likely through his other consulting firm, Sulgrave Partners) from PCIAA, McGrawHill Financial, Huron Healthcare, Motorola Mobility and other clients.
In his first television advertisement that began airing this month before the May 5 primary, Griffin says that he is the “clear conservative choice for Congress.” In a spot that is clearly biographical in nature, Griffin references his consulting work for the financial sector interests thus: “I’ve also owned my own business, so I know what it means to make a budget and stick to it.” Left unsaid, the $406,000 a year he earned promoting the very worst of Wall Street.
Read Next: Senator Joe Manchin defends the law firm accused of concealing black lung medical evidence.
This post was originally published at RepublicReport.org
Only one day after the Center for Public Integrity’s reporting series on denials of black lung benefits to coal miners was awarded the Pulitzer Prize, Senator Joe Manchin (D-WV) defended the controversial law firm at the center of the investigation.
As he stepped to the podium of the National Western Mining Convention in Denver on Tuesday, Manchin heaped praise upon Jackson Kelly, a sponsor of the event and the law firm implicated in unethically concealing medical evidence of miners dying of black lung.
“I want to thank my dear friends at Jackson Kelly,” exclaimed the senator. In his remarks, Manchin also noted that his former staffer, Kelly Goes, is now an employee of the firm.
In a brief interview with Republic Report after his speech, Manchin was asked about Jackson Kelly’s conduct regarding black lung cases. He brushed aside criticism of the firm.
The Center for Public Integrity story revealed that Jackson Kelly has systemically denied coal miners black lung benefit claims by withholding unfavorable evidence and shaping the opinions of doctors called upon in court. CFPI Reporter Chris Hamby’s investigation “suggests that there has been a pattern and practice by lawyers at the Jackson Kelly law firm which has compromised the integrity of the black lung benefits program and potentially tainted numerous decisions adversely affecting coal miners and their survivors,” wrote Representatives George Miller (D-California) and Joe Courtney (D-Connecticut) in a letter to the Department of Labor last year.
“If the law firm is doing their job and we don’t like it, we’ve got to look at the rules and laws we have on the books,” said Manchin, after being asked by Republic Report about his praise of Jackson Kelly. “They’ve been a prestigious law firm for a long time in West Virginia. There’s good people that I know that work there and if there’s something that’s wrong and needs to be fixed or changed, it will be,” he continued.
A Jackson Kelly attorney named Douglas Smoot had his law license suspended in 2011 for one year after being accused of hiding evidence in a black lung case. Other Jackson Kelly attorneys have faced investigations over their conduct in regards to black lung cases. One retired judge who handled black lung cases reviewed documents obtained by the Center for Public Integrity investigation and said the firm had been “really misleading the court.”
Manchin is a close ally to the coal industry. At the conference, he touted his new legislation that would block the EPA from implementing new regulations on coal power plants. Jackson Kelly, according to its website, has represented the coal industry since the mid-19th century.
As Public Campaign noted, Manchin has “received $50,825 from Jackson Kelly employees during his time in Congress, his seventh-largest donor.”
Manchin did not sign on to the letter from other congressional Democrats asking the Labor Department to investigate claims that Jackson Kelly improperly concealed medical evidence of black lung claims.
Yet Manchin told us that he is confident that any potential wrongdoing will be worked out.
“You can’t find people guilty before they go through the process. Are you accusing them of being guilty?” said Manchin. Asked again about the Center for Public Integrity report, Manchin replied, “I’m just saying, let’s see where it unfolds.”
Watch the interview below:
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This post was originally published at RepublicReport.org
Today, the congressional Energy and Commerce committee's subcommittee on Energy and Power is scheduled to hold a hearing on Representative Cory Gardner’s (R-CO) bill to force the Obama administration to approve all applications for new liquefied natural gas terminals used to export natural gas. A close look at the staffers involved with this particular subcommittee reveals that several have close ties to the LNG industry.
– Energy and Power staff counsel Patrick Currier is a former lobbyist for gas and energy companies, including the Gas Processors Association, FirstEnergy Corp, and the CCS Alliance.
The chair of the subcommittee, Representative Ed Whitfield (R-KY), also has a stake in this debate. The most recently available personal finance disclosures show Whitfield holds between $250,000-$500,000 in stock with ExxonMobil and holds between $250,000-$500,000 with Chevron — two companies that would gain substantially from new LNG export terminals. ExxonMobil is heavily invested in expanding into the LNG industry, and last week, posted an item on its company blog criticizing the Department of Energy for its “go-slow approach to processing [LNG terminal] applications.” Earlier this month, Chevron chairman John Watson told a crowd in Houston that there’s “no question that sufficient gas exists in the US and Canada to export globally.”
Bill Cooper, president of the Center for Liquified Natural Gas, a pro-LNG export association, said he is “happy” about the wave of political support. “We didn’t gin up the Ukrainian crisis. We didn’t gin up the idea that it ought to be connected in some way to LNG exports. But Congress did, obviously, and a lot of editorials, experts and geopolitical analysts have all jumped on that. We appreciate the attention that LNG exports are receiving, and if it does provide a catalyst to make something happen that heretofore has not, then we’re going to be very happy with that,” Cooper told NGI Daily.
On the other side of Capitol Hill, Senator Mary Landrieu (D-LA) held her own hearing on the topic of LNG exports. “Landrieu is expected to make the case that an increase in liquified natural gas exports would create high-paying jobs and turn the US into an energy superpower,” buzzed The Hill’s Overnight Energy before the hearing.
As Republic Report has noted, pundits and politicians closely aligned with the LNG industry have used the crisis in Ukraine to demand more LNG exports, even though doing so would not hamper Russia’s dominance over the market or affect the price of gas in the region.
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This post was originally published at RepublicReport.org
A small group of pundits and politicians with close ties to the fossil fuel industry are using the crisis in Crimea to demand that the United States promote natural gas exports as a quick fix for the volatile situation. But such a solution, experts say, would cost billions of dollars, require years of development, and would not significantly impact the international price of gas or Russia’s role as a major supplier for the region. Rather, the move would simply increase gas prices for American consumers while enriching companies involved in the liquified natural gas (LNG) trade.
On Capitol Hill, House Energy and Commerce Committee Chairman Representative Fred Upton (R-MI) was among the first to use the crisis in Ukraine to demand that the Department of Energy speed up the approval process for new LNG terminals. “Now is the time to send the signal to our global allies that US natural gas will be an available and viable alternative to their energy needs,” said Upton in a statement. As we’ve reported, Upton’s committee is managed in part by Tom Hassenboehler, a former lobbyist who joined Upton’s staff last year after working for America’s Natural Gas Alliance, the primary trade group pushing to expand natural gas development and LNG exports.
Paul Bledsoe, in an opinion column for Reuters, wrote that the United States should expedite natural gas exports to “bolster transatlantic solidarity and help to form a united US-EU response to Russian intervention in Crimea.” He was identified in the piece as a member of the “White House Climate Change Task Force under President Clinton.” What wasn’t disclosed, however, is that Bledsoe is an official with a pro–fossil fuels think tank called the Bipartisan Policy Center, which is funded by the American Gas Association and energy companies with a financial stake in promoting the natural gas industry. (Although he’s not listed on the website, a representative with BPC told Republic Report that Bledsoe continues to work there.)
Groups created and funded by Charles Koch, chief executive of Koch Industries, have also demanded that America should respond to the crisis in Crimea with LNG exports. “A serious President would also fast-forward permits on new liquefied natural gas terminals that could ship to Europe,” claims a column posted by Americans for Prosperity, a Koch-run advocacy group. A similar argument is advanced by the Koch-founded Cato Institute.
What’s left undisclosed, however, is the huge financial stake in the debate for Koch Industries. A brochure for the company shows that Koch has deeply expanded its footprint into the natural gas market, and is now actively engaged in shipping, sourcing and marketing LNG, in addition to becoming a leader in developing financial instruments related to natural gas. “To complement existing North American activities from Houston and to optimize their global portfolio, KS&T companies are expanding a Europe-wide natural gas business from Geneva and an LNG trading business from offices in Houston and London,” reads the document. Further, Koch federal lobbying disclosures show that the firm has pushed a bill to expedite LNG exports from America to NATO countries.
In perhaps the most ironic twist of this public debate around how to respond to Russia’s incursion into Crimea, American lobbyists with ties to Russia are calling for a solution that would not only shield Russian gas oligarchs, but enrich them. The National Association of Manufacturers has opposed tough sanctions on Russia. Instead, NAM has used the crisis in Ukraine to “urge speedier approval of liquified natural gas exports, arguing that the move would weaken Vladimir Putin’s control over Europe’s energy supply.” NAM’s chief lobbyist Jay Timmons told Politico that an LNG-export response would “send a strong signal to the Russian Federation, our NATO allies, our trading partners and the rest of the world that energy exports matter and are a critical tool of American foreign policy.”
What Timmons did not mention is that ExxonMobil is a leading member of his trade association, and that ExxonMobil has extensive ties to Russian gas giants, including partnerships to develop natural gas in the United States and around the world. (For more on the business ties, see Kert Davies and Steve Horn’s recent reporting on the Putin-sanctioned alliance between ExxonMobil and Russian state–owned oil and gas giant Rosneft.) In short, Timmons’s strong signal to Russia would help Russian gas businesses.
Read Next: How to avert another Cold War over Crimea.